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SaaS, a method of delivering Software, has gained prominence in recent years. By 2026, the market for SaaS is anticipated to increase by 307.3 billion dollars, thanks to the growth of smart devices and public/private cloud services.
SaaS is a popular model for delivering Software because of its cost-effectiveness, flexibility, personalization, and automation.
You're in the right place if you need help figuring out where to begin when building a SaaS app. This article will help you understand:
- What are SaaS Applications, and what advantages do they have?
- How to describe SaaS development in detail?
- Keep in mind these important points when developing your Software as a Service app.
What is SaaS?
Software as a Service, also known as SaaS or software-as-a-service, is a business model that offers an alternative to the traditional licensing of Software.
SaaS is a new approach to software maintenance and delivery. Developers don't have to wait to update features or sell their programs with a perpetual license. A Custom software development company instead markets their Software (hence, the name) as a "service," usually via a monthly subscription.
Cloud-based applications don't require physical installation on the user's PC. An example is the best way to illustrate how SaaS differs from on-premises applications.
Consider Adobe Photoshop, a product popular with visual creators. It made the switch from on-premise to SaaS. Photoshop is probably something you have seen in action if you are a visual artist.
Adobe Photoshop and countless other software programs were sold for an initial price to the public years ago.
After the customer paid, they received a code that allowed them to use a particular version of Photoshop for as long as they wanted.
You will quickly learn that this is no longer Adobe's method of providing its top product to customers if you attempt to purchase the most recent version on Adobe's website.
A monthly subscription is cancellable at any time. If users decide they don't want to use a particular service, there's no need for them to pay money.
Adobe and other SaaS platforms offer users the opportunity to try out a product for free. Let's look at some of the other types that cloud-based Software can bring its business owners and users.
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SaaS Applications Types
SaaS applications can serve a wide range of functions but are divided into several distinct categories. Here are some examples of SaaS applications that reflect the current market trends.
CRM Software
SaaS applications for Customer Relationship Management help businesses maintain their database and manage marketing campaigns.
They also forecast sales and provide dashboards and reports on sales activity.
Project Management Software
SaaS has become the industry standard for project management and workflow. Jira and others, which are cloud-based project management apps, are available from anywhere and can be used for remote working.
Apps for eCommerce
SaaS-based Software is in high demand as more brick-and-mortar stores go online. Shopify is a good example of a platform that has everything you need to launch and build an e-commerce website, such as product management and supply chain integration, along with payment system integration.
ERP Software
SaaS is widely used to deliver enterprise-grade Software. Cloud-based ERP software includes complex data analysis tools that help businesses process large amounts of data.
SaaS-based solutions, such as ERP Cloud, use machine learning and artificial intelligence (AI) to give businesses a complete view of their business operations.
Collaboration Tools That are SaaS-Based
The remote work trend is not going away, no matter how much we dislike it. Businesses on a worldwide scale are increasingly using SaaS collaboration tools.
Market Software
SaaS has become a staple in marketing, with dozens of tools available to help analyze and optimize promotion strategies.
This SaaS-based product is for content creators, marketers, and all other types of users. It provides rich functionalities for managing communications and publications on Facebook, Twitter, and Instagram. A dashboard that allows users to interact with their audiences, schedule posts, and discover preferences.
Human Resources Management
The Human Resources department is responsible for many tasks relating to staff. SaaS-based applications can simplify a range of functions, including gathering data about employees and managing their job offers, tracking employee engagement and performance, and compensation.
Benefits of SaaS Apps
Why does the traditional SaaS software model seem to lose out in comparison with other models? Now let's list some of the benefits that SaaS applications can offer to businesses and organizations.
There is no Need to Setup
You must configure a conventional app to work on your computer. A particular software should also be compatible with your infrastructure.
You will need extra computing, storage, and network capacity if your workload increases. SaaS applications are more resource efficient and do not require any configuration or setup.
Scaling on Demand
Cloud infrastructure can be scaled on demand to support a greater number of users. Cloud-based SaaS applications can easily be scaled to meet your business requirements.
Cloud fees may also rise, but there will be no need to upgrade your infrastructure.
Flexible Payment Model
The cost of purchasing an enterprise license is usually categorized as a capital expense (CAPEX). The monthly fee for using a SaaS is a small operating expense that will not be a burden on the budget of your business.
You can stop paying for the subscription if you no longer use the app.
You Can Access Your Account from Anywhere, Anytime, and on Any Device
SaaS applications run on the cloud, which means you are no longer tied to your desktop. SaaS apps can be accessed from anywhere, even if you work remotely.
They can be run across multiple devices instead of just a workstation, unlike traditional apps.
Quick Upgrades
Upgrade packages are usually required to upgrade traditional Software. SaaS offers continuous improvement and development as a benefit.
Customers can also gain immediate access to the latest application updates.
Useful for Proof-of-Concept
Comparatively, it is much easier to test a SaaS application before purchasing a subscription. SaaS apps allow for 3-D visualization of their features and functions before you commit to a purchase.
The Security of Your Own Home
SaaS applications are always developed with a focus on security. It is because several SaaS tenants use the same platform, and data security is of paramount importance.
Developers also consider the security of their applications. SaaS applications must be protected against misuse and cyberattacks, which is why multi-factor authentication measures are essential.
Enterprise Software is Available for Download
Marketing spaces, CRM Development company sales, and enterprise software can be beneficial to businesses that are using software-as-a-service applications.
SaaS applications, with their cloud-based features, allow you to access these apps without having to install Software.
Market Reach
SaaS applications are available to all users and businesses, regardless of their size or niche. G Suite, Dropbox, or Adobe are all services that don't have a specific market in mind.
Anyone can use them and enjoy their benefits.
Data Analytics
Every business should analyze its performance and processes to see where it can improve and what needs special attention.
SaaS provides you with this insight through the gathering and evaluation of relevant data.
Read More: Things to Keep in Mind When Developing a SaaS Application
Examples of B2B SaaS Applications
The SaaS model has become popular in the B2B sector. These are a few examples of applications that could adopt the SaaS model.
ERP Systems
ERP systems, which are web-based apps running on the cloud, consist of several modules that optimize and automate internal business processes.
ERPs include modules for inventory management, accounting, human resources, CRM, and more. Cloud ERP, SAP S/4HANA Cloud, and others are the two biggest ERP names.
Market Software
Marketing drives customers to businesses and is a key factor in their growth. Companies can streamline marketing campaigns and improve market positioning by using marketing analytics and social media platforms.
Examples of B2C SaaS Applications
Cloud-based apps are for more than just businesses. People around the globe use them every day, whether it's to learn or have fun.
Online Streaming Services
Netflix, an American streaming service, allows users to stream movies and television shows on any device. Spotify, another streaming service popular in the SaaS model, is also very well-known.
Subscribing to Spotify gives users access to thousands of songs from dozens of different genres, all by the same artists, at a much lower cost and convenience than purchasing each album individually.
Apps for e-Learning
Many online learning applications also sell their service using the SaaS model. Coursera, for example, offers an entire library of courses for only $59 per month.
This is a great deal for learners, who can choose from a wide range of classes and receive internationally recognized certifications. You'll have to follow a six-step development process to develop custom software if you want to create one of these SaaS platforms or similar.
What to Consider when Bringing SaaS Apps to Data?
SaaS application development is an extensive and complex process that involves a lot of responsibility.
You need to consider several things carefully before developing your cloud app.
Technology Stack
The same as choosing building materials, selecting a SaaS technology stack is similar to picking the right Software for your application.
The technology stack you select is used to create and operate your web application. You'll first need to develop the client-facing component of your platform. They are all well-known and almost ubiquitous.
- HTML + CSS
- JavaScript Frameworks (Angular React Vue.js, React)
There are several programming languages and frameworks to select from for server-side development:
- JavaScript (Node.js)
- PHP (Laravel)
- Ruby on Rails
Cloud computing is the foundation of SaaS apps, and cloud services are, therefore, essential to building these types of applications.
AWS is a great choice to ensure reliable performance for cloud-based apps. AWS offers more than 200 tools and features, including scalability, security, and more.
Tenancy Model
SaaS-based applications can be architected in two different ways: as a single tenant or multi-tenant. The number of tenants who share the same Software, database, and computing resources in software-as-a-service applications is governed by the tenancy.
Any business using SaaS is referred to as a tenant in this sense.
While single-tenant architectures provide each tenant with their own, multi-tenant architectural models allow tenants to share the same application, database, and technological infrastructure.
Your wants and specifications will determine the ideal architecture. You may choose the perfect tenancy for your purposes with the aid of a software architect and a business analyst.
Pricing Strategy
Pricing strategy for your platform can either make or break your app. As the SaaS model evolved, there have been several pricing strategies that have been proven.
- The core features of an app are usually broad and appealing to the largest audience. To make money from such apps, you need to turn free users into paid users (or "premium" users) by providing a set of advanced features in exchange for an annual or one-time fee. Evernote offers cross-device sync and free note-taking. You can pay extra to sync with additional devices or store more data on the cloud. Duolingo also follows this pricing strategy.
- Pay-as-you-go works in the same way. The more features the user needs, the higher the price. The model is popular with companies such as Amazon, which charge users for how many API requests they send to the server in a given period. SMM platforms and accounting apps are also monetized in this manner. The price depends on the number of scheduled posts or invoices generated.
- The business goal of tiered pricing is to provide different packages for customers depending on their budget and needs. This pricing model has a similar product idea to the last. The more basic features customers pay, the higher their price. As you offer monthly packages, your revenue is predictable.
Read More: SaaS Tools Are Usually Ideally Suited To Be Connected With Other Apps
SaaS App Development in Six Steps
SaaS app development is unique due to its cloud-based structure. It's therefore important to adhere to six key steps to create a product that will be successful: planning, discovery, application design and architecture, testing and development, maintenance, and future development.
Step 1: Planning
A successful application is built on a solid foundation of planning. SaaS applications are successful not just because they use the best technologies but also because of the research done on the market and the audience.
They're also more likely to be successful if you thoroughly study the app and its target, define the goal, as well as think through all the features. When planning SaaS application development, you need to start with these steps.
You can ask for assistance from your partner in development, even though planning is typically the responsibility of the stakeholder.
Business analysis services (BA) are offered by an experienced IT firm to help you research the case and to provide the best solution to develop and enter the market.
Step 2: Discovery Phase
The exploration phase entails organizing plans for SaaS app development and producing documents to assist your team in producing the desired application.
A BA will set up meetings with you to understand the project details and prepare documents like:
- Software Requirements Specification (SRS): The Software Requirements Specification (SRS) reflects the needs of your SaaS app. It includes technical specs (such as the structure and dependencies of the application), project goals, user groups, scope, and other information.
- Risk Assessment and Mitigation Plan: A risk assessment plan will help you predict the risks that may arise when creating your SaaS cloud application and how to mitigate them.
- Feature Breakdown List: A table that lists all of the features and time estimations you would like to include in your SaaS Platform.
- Estimated Cost: A table that shows a budget for SaaS application development.
The documents you receive during this phase are just a small part of what is delivered. A BA will also help you determine the best development team to use for your SaaS product within the budget and timeframe allocated.
Step 3: Application Design
When creating a web application, you must take into account both the User Experience (UX) and the User Interface (UI).
Before starting your cloud-based SaaS app, it is essential to make the proper interface selection.
When developing your SaaS platform, take into account the devices that your audience is likely to utilize. Both PCs and mobile devices can use SaaS programs.
Your UI/UX designer will produce designs that work with different-sized devices so people can be productive wherever they are, whether at home, at work, or on the go.
Step 4: Architecture Design
Software architecture forms the basis of any successful application which meets technical needs. SaaS architecture makes use of cloud computing, so the databases, storage, and services are situated there rather than on servers.
Most people use Amazon Web Services as their cloud computing platform. However, there are other cloud service providers.
- Flexibility: Software engineers can access 200+ AWS services, which are compatible with Windows and Linux. The developers can select from a wide range of programming languages and databases.
- Scalability: Amazon Web Services provides scalability options out of the box. App owners can scale their apps with just a few mouse clicks. AWS's pay-as-you-go model makes it possible to downscale. Users only pay for services that they use.
- Security: AWS is the world leader in cloud services and offers high protection to users. AWS is the top choice of developers and entrepreneurs because it provides protected data centers, encryption options, and a wide range of services.
- Pricing: AWS's pay-as-you-go system allows users to avoid overpaying when they grow their businesses. AWS also offers free packages to help small enterprises to build cloud-based applications at an affordable price.
A software architect will prepare your high-level architectural design, regardless of whether you use AWS or any other service to build your SaaS.
This is the description of all your app components, their relationships, and how they are connected. It's the foundation for any future development.
Step 5: Development and Testing
This step is simple and does not require any explanation. During this phase, SaaS developers will work on your app's front-end and back-end.
Engineers who specialize in quality assurance (QA) ensure that each functional component functions properly both when used independently and when integrated into a system.
It's important to remember that development and testing happen incrementally when it comes to software development, especially when we're talking about SaaS firms.
The creation of a whole SaaS application only happens in stages.
The initial phase is typically the minimal viable product. It has all the necessary components to satisfy the requirements of your audience.
They can gather feedback following the release of a SaaS MVP and determine which features require development and improvement. Agile is a popular software development method, particularly among startups.
Deployment is the final step in iterative software development services.
The deployment process is the act of releasing an MVP of a SaaS cloud application to users. An expert or another member of the team with relevant experience will prepare all the parts of the new code that are to be deployed and then merge the entire codebase in production.
Step 6: App Maintenance and Further Development
Focus your efforts once your MVP has been released to the users on its performance. You should collect user feedback during this stage, analyze it and decide on what improvements can be made.
Also, determine the new features that your users will need. SaaS developers in your team will help fix bugs and also plan for future features.
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Conclusion
SaaS Applications may be better solutions in some cases. However, they have quickly gained popularity because of the many benefits that it provides to both consumers and developers.
You should prepare for six steps of development if you want to launch a quality SaaS product. SaaS applications have many distinct advantages over conventional Software, including lower subscription costs, increased accessibility, availability, and 24/7 technical support.
How to create a SaaS app is a challenging task. Apart from selecting a reliable vendor, deciding the best tech stack and architecture, and choosing an appropriate cloud provider, there are also issues with cost and talent availability.
It can take several months to build a solid team of SaaS developers with the right qualifications. This could result in you losing your competitive advantage. In this case, working with an established software developer with expertise in SaaS app development is the best alternative to building your own in-house SaaS team.
